optimistic markets are waiting for trade news global indices mostly higher on tuesday tech stocks lead in us

Optimistic Markets Are Waiting For Trade News, Global Indices Mostly Higher On Tuesday, Tech Stocks Lead In US

Asian markets were mixed in Tuesday trading as investors wait on trade-related news. European indices were higher across the board at midday on optimism US/Sino trade talks would produce positive results. US futures were indicated to open higher in early premarket trading.

Asian Markets Are Mixed, Optimism And Earnings Are In Focus

Tuesday is the second of two days of trade-talks between US and Chinese representatives and so far those representatives have been tight-lipped. As yet no information has been given on progress or lack of it but the market remains hopeful. On Monday a Chinese spokesperson said China was ready to negotiate in good faith with the US.

The Japanese Nikkei led the session with a gain of 0.82%. The index was supported by positive movement in Nissan, one of the top traded issues in that market. Carlos Ghosn, former Nissan CEO, appeared before a Japanese court in defense of allegations he committed financial fraud. The Australian ASX was runner up in Tuesday action with a gain near 0.70% fueled by strength in the financial sector. The Hong Kong-based Heng Seng posted the smallest gain, 0.15%.

In China, the Shang Hai composite fell -0.26% on fear of slowing economic activity. An economist has stated the countries GDP rate has probably fallen below 6.0% which is well below the consensus target 6.5%. Korea’s Kospi fell -0.58% on weak guidance from Samsung and LG.

European Markets Surge On Optimism, Retail Strength

European indices were higher across the board at midday on optimism US/Sino trade talks would produce positive results. The word that many EU retailers saw stronger than expected holiday sales helped drive most indices up by 1.0% or more. The retailers, boosted by strong sales whispers, were up more than 1.5% although gains were not uniform. One major retailer, WM Morrison, missed its holiday sales forecasts and its shares fell -3.0%.

On the economic front, the EU Business Climate index fell over the last month as trade tariffs and slowing growth weigh on outlook. The index fell more than expected to 0.89 from 1.04 in evidence of said slowing growth. In political news, the Brexit deadline is fast approaching. The EU is now considering what action it will take if the UK asks to extend its Article 50 deadline. The UK parliament is expected to vote on the Brexit deal next week, the deal is not expected to pass muster at this time.

US Markets Up On Tech

US futures were indicated to open higher in early premarket trading. The average gain was near 0.80% for the major indices with tech in the lead. Shares of FAANG stocks were up an average 1.0% with Amazon leading. While economic data and outlook remain positive it is the trade talks that are lifting these stocks. Traders will be looking for news on the trade talks in today’s session, anything positive is likely to lift the indices further.

Later this week traders should be wary of the FOMC minutes, due out Wednesday afternoon, and an ECB decision due out on Thursday. Also, between now and the end of the week there are eight (8) speeches from FOMC members, any one of which could move equities and forex market.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.

RISK DISCLAIMER

This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.